Former SagePoint rep fined $5,000 for unapproved private transactions

The Financial Industry Regulatory Authority Inc. has fined former SagePoint representative Troy Baily $5,000 and suspended him for six months for the undisclosed and unapproved sale of private securities.

In 2017, Baily, of Omaha, Nebraska, initiated $210,000 in transactions in securities in Future Income Payments, which represented itself as a structured cash flow investment that purchased pensions at a discount from pensioners and then sold a portion of those pensions as a “pension stream” to investors, promising returns of 7% to 8%.

Three of the four investors who bought the securities from Baily were SagePoint customers, who initiated a Finra arbitration. In March 2018, SagePoint terminated Baily’s Finra registration and its association with him.

Future Income Payments ceased business in 2018, owing nearly $300 million in unpaid investor payments. In March 2019, the company and its owner, Scott A. Kohn, were charged with conspiracy to engage in mail and wire fraud.

[More: Finra bars broker who sold Future Income Payments Ponzi]

The post Former SagePoint rep fined $5,000 for unapproved private transactions appeared first on InvestmentNews.

You May Also Like

Leave a Reply

Your email address will not be published. Required fields are marked *